A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from such a trust or estate. If a trustee purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in such a trust to a trustee, KRS 386.466 applies to a receipt from the trust.

Effective: January 1, 2005

History: Created 2004 Ky. Acts ch. 158, sec. 10, effective January 1, 2005.